CNX Resources (NYSE:CNX) Releases Quarterly Earnings Results, Beats Expectations By $0.72 EPS

CNX Resources (NYSE:CNX) announced its quarterly earnings results on Thursday. The oil and gas producer reported $1.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.60 by $0.72, Briefing.com reports. CNX Resources had a net margin of 40.06% and a return on equity of 10.65%. The firm had revenue of $435.00 million for the quarter, compared to the consensus estimate of $475.16 million. During the same period in the prior year, the firm posted $2.43 earnings per share. The company’s revenue for the quarter was down 35.7% on a year-over-year basis.

Here are the key takeaways from CNX Resources’ conference call:

• 45Z credit monetization outlook improved: Treasury’s revised carbon-intensity calculations increased the expected annual value of CNX’s 45Z credits to approximately $40 million, with about $30 million of previously sold credits expected to appear in third-quarter cash flow. Combined with environmental attributes, CNX is targeting roughly a $90 million annual low-carbon revenue run rate.
• CNX expects third-quarter capital spending to rise from the second-quarter level before moderating in the fourth quarter, but reiterated that activity timing—not inflation—is driving the quarterly pattern and maintained its full-year CapEx outlook around the midpoint.
• Production is expected to build through the second half, with a 12-to-13-well Marcellus pad coming online in the third quarter and an Utica pad expected in the fourth quarter; management said it is not specifically engineering production around winter gas prices.
• Management remains willing to pursue countercyclical share repurchases, potentially using additional revolver debt if risk constraints permit, citing a soft near-term gas outlook but strong longer-term Appalachian fundamentals. CNX also reported that Utica wells are performing in line with expectations and that drilling efficiency continues to improve, while well costs remain around $1,700 per lateral foot.

CNX Resources Trading Down 0.2%

CNX stock traded down $0.06 during trading on Thursday, hitting $34.65. 816,302 shares of the company traded hands, compared to its average volume of 2,085,874. The company has a 50-day moving average of $33.57 and a 200-day moving average of $36.94. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.46 and a current ratio of 0.49. CNX Resources has a 1 year low of $27.72 and a 1 year high of $43.62. The firm has a market capitalization of $4.90 billion, a PE ratio of 4.79 and a beta of 0.59.

Insider Buying and Selling

In other CNX Resources news, Director William N. Thorndike, Jr. sold 28,800 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $38.25, for a total value of $1,101,600.00. Following the completion of the sale, the director owned 426,585 shares in the company, valued at approximately $16,316,876.25. The trade was a 6.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 5.03% of the stock is owned by company insiders.

Institutional Investors Weigh In On CNX Resources

A number of large investors have recently made changes to their positions in CNX. State of Wyoming purchased a new stake in CNX Resources in the second quarter worth $29,000. Smartleaf Asset Management LLC increased its position in CNX Resources by 56.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 810 shares of the oil and gas producer’s stock valued at $30,000 after purchasing an additional 293 shares during the period. Los Angeles Capital Management LLC bought a new position in CNX Resources in the 4th quarter worth $34,000. Kestra Advisory Services LLC bought a new position in CNX Resources in the 4th quarter worth $50,000. Finally, EverSource Wealth Advisors LLC increased its position in shares of CNX Resources by 393.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,925 shares of the oil and gas producer’s stock valued at $65,000 after buying an additional 1,535 shares during the period. 95.16% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Weiss Ratings cut shares of CNX Resources from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday. Barclays reduced their price target on shares of CNX Resources from $36.00 to $35.00 and set an “underweight” rating for the company in a research report on Tuesday, May 26th. Mizuho decreased their price target on shares of CNX Resources from $44.00 to $42.00 and set a “neutral” rating on the stock in a report on Wednesday, May 27th. Zacks Research downgraded CNX Resources from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 28th. Finally, Truist Financial raised CNX Resources from a “sell” rating to a “hold” rating and set a $35.00 price objective for the company in a research note on Wednesday, July 15th. Nine analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, CNX Resources presently has an average rating of “Reduce” and an average price target of $35.44.

Key Stories Impacting CNX Resources

Here are the key news stories impacting CNX Resources this week:

• Positive Sentiment: Q2 earnings exceeded expectations: CNX reported quarterly earnings of $0.68 per share, versus the consensus estimate of $0.60. Another estimate cited earnings of $0.72 per share compared with a $0.57 consensus, indicating an earnings beat. CNX Resources Q2 earnings report Zacks CNX Resources Q2 earnings beat
• Positive Sentiment: Profitability remained solid: The company reported a 40.06% net margin and 10.65% return on equity, supporting the view that CNX continues to generate significant cash flow despite weaker revenue. MarketBeat CNX earnings details
• Neutral Sentiment: Natural-gas demand offers a potential longer-term catalyst: Coverage highlights rising natural-gas demand as a possible support for CNX, although the articles do not identify a new contract or immediate earnings impact. CNX Resources and rising natural gas demand
• Negative Sentiment: Year-over-year performance deteriorated: Revenue fell 35.7% from the comparable quarter, while earnings declined from $2.43 per share last year. This weak comparison may outweigh the modest consensus beat for some investors. CNX Reports Second Quarter Results
• Negative Sentiment: Analyst sentiment is cautious: CNX Resources was assigned an average “Reduce” rating, limiting the positive effect of the earnings surprise. CNX Resources analyst rating

About CNX Resources

CNX Resources Corporation is a natural gas and natural gas liquids producer with operations concentrated in the Appalachian Basin. Established as an independent, publicly traded entity in 2018 following its spinoff from Consol Energy, the company focuses on the exploration, development and production of hydrocarbon resources in the Marcellus and Utica shales across Pennsylvania, West Virginia and Ohio.

In addition to its upstream activities, CNX Resources has invested in midstream infrastructure through its subsidiary that gathers, processes and transports natural gas.